Louisiana-Pacific (NYSE:LPX – Get Free Report) and JELD-WEN (NYSE:JELD – Get Free Report) are both construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.
Risk & Volatility
Louisiana-Pacific has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500. Comparatively, JELD-WEN has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.
Insider & Institutional Ownership
94.7% of Louisiana-Pacific shares are held by institutional investors. Comparatively, 95.0% of JELD-WEN shares are held by institutional investors. 1.4% of Louisiana-Pacific shares are held by insiders. Comparatively, 1.2% of JELD-WEN shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Louisiana-Pacific | $2.94 billion | 2.14 | $420.00 million | $4.24 | 21.29 |
JELD-WEN | $3.78 billion | 0.11 | -$189.02 million | ($4.06) | -1.21 |
Louisiana-Pacific has higher earnings, but lower revenue than JELD-WEN. JELD-WEN is trading at a lower price-to-earnings ratio than Louisiana-Pacific, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Louisiana-Pacific and JELD-WEN’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Louisiana-Pacific | 10.34% | 18.67% | 12.19% |
JELD-WEN | -10.03% | -1.60% | -0.35% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Louisiana-Pacific and JELD-WEN, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Louisiana-Pacific | 1 | 3 | 4 | 0 | 2.38 |
JELD-WEN | 2 | 7 | 0 | 0 | 1.78 |
Louisiana-Pacific currently has a consensus price target of $110.57, suggesting a potential upside of 22.46%. JELD-WEN has a consensus price target of $6.03, suggesting a potential upside of 23.21%. Given JELD-WEN’s higher probable upside, analysts clearly believe JELD-WEN is more favorable than Louisiana-Pacific.
Summary
Louisiana-Pacific beats JELD-WEN on 11 of the 14 factors compared between the two stocks.
About Louisiana-Pacific
Louisiana-Pacific Corporation, together with its subsidiaries, provides building solutions primarily for use in new home construction, repair and remodeling, and outdoor structure markets. It operates through Siding, Oriented Strand Board, LP South America, and Other segments. The Siding segment offers LP SmartSide trim and siding products, LP SmartSide ExpertFinish trim and siding products, LP BuilderSeries lap siding products, and LP Outdoor Building Solutions; and engineered wood siding, trim, soffit, and fascia products. Its Oriented Strand Board segment manufactures and distributes oriented strand board structural panel products comprising LP TechShield radiant barriers, LP WeatherLogic air and water barriers, LP Legacy premium sub-flooring products, LP NovaCore, LP FlameBlock fire-rated sheathing products, and LP TopNotch sub-flooring products. The LP South America segment manufactures and distributes oriented strand board structural panel and siding products. This segment distributes and sells related products for the region's transition to wood frame construction. It offers timber and timberlands and other products and services. sells its products primarily to retailers, wholesalers, and homebuilding and industrial businesses in North America and South America, Asia, Australia, and Europe. The company was incorporated in 1972 and is headquartered in Nashville, Tennessee.
About JELD-WEN
JELD-WEN Holding, Inc. designs, manufactures, and sells wood, metal, and composite materials doors, windows, and related building products in North America and Europe. The company offers a line of residential interior and exterior door products, including patio doors, and folding or sliding wall systems; non-residential doors; stile and rail doors; and wood, vinyl, and wood composite windows. It also provides other ancillary products and services, such as trim boards, glasses, hardware and locks, window screens, and molded door skins, as well as miscellaneous installation and other services. The company sells its products under the JELD-WEN, AuraLast, MiraTEC, Extira, LaCANTINA, MMI Door, Karona, ImpactGard, JW, Aurora, IWP, True BLU, ABS, Siteline, National Door, Low-Friction Glider, Hydrolock, VPI, AURALINE, FINISHIELD, MILLENNIUM, TRUFIT, EPICVUE, EVELIN, Swedoor, Dooria, DANA, Mattiovi, Zargag, Alupan, Domoferm, Kellpax, and HSE brands. It serves wholesale distributors and retailers, retail home centers, and building product dealers, as well as homebuilders, contractors, and consumers. JELD-WEN Holding, Inc. was founded in 1960 and is based in Charlotte, North Carolina.
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